Seth Godin the founder of Squidoo and author of many best sellers, wrote a post about analyzing websites.
From the article:
It's tempting to believe that any website can become a perpetual motion machine of profit. But before you start one, invest in one or go to work for one, a few things to ask:
- What's the revenue per visit? (RPM). For every thousand visitors, how much money does the site make (in ads or sales)?
- What's the cost of getting a visit? Does the site use PR or online ads or affiliate deals to get traffic? If so, what's the yield?